As of mid-September 2025, Luckin Coffee had opened five locations in New York City, marking a continued expansion of its presence in the U.S. market. This follows the initial launch of its first two stores in the city earlier in the year.
Luckin's operating model in the U.S. relies heavily on discounting, with the company showering users with coupons in its mobile app, typically ranging from 30% to 50% off. This strategy aims to grow brand awareness and establish a foothold in the competitive U.S. coffee market.
The company's approach prioritizes brand recognition on a national basis, even if it means operating at smaller losses on a per-store basis during the initial phase. This contrasts with traditional competitors that typically target a minimum of 15% margin per store.
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